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Recovery Rebate Credit vs Student Loans in Default
Hello,
What happens when someone has federal student loans in default and has filed 2020 taxes and has claimed a recovery rebate credit for stimulus check 2?
I understand that Private lenders cannot garnish the stimulus or recovery rebate credit unless there is a court order to recover debt and that the stimulus and tax returns are protected from government garnishment at this time. However there is no clear information in regard to whether the recovery rebate credit is protected from being seized as a result of student loans in default.
Anyone just experienced any of these scenarios or have any insider knowledge?
Much appreciated,
March 17, 2021
11:21 AM